State Rubbish Collectors Assoc. v. Siliznoff, Sup. Ct. Of Cal.,

38 Cal.2d 330, 240 P.2d 282 (1952)

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Nature of the Case

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Facts

Kobzeff signed a contract with the Acme Brewing Company to collect rubbish. The work was to be done by John Siliznoff (D), Kobzeff's son-in-law. Kobzeff and Abramoff, the prior person who collected the garbage from Acme, were members of State Rubbish Collectors Association (P). D was not a member. The by-laws of the association provided that one member should not take an account from another member without paying for it. Abramoff complained to the association, and Kobzeff was called upon to settle the matter. Kobzeff and D claimed that the account belonged to D. During the meetings with P, D was told that they would take the job away from him even if they did it for nothing. Another told D to pay up or else. A few days later D was also told that if he did not agree to pay, he would be beat up and cut up the truck tires or burn the truck, or otherwise put him out of business completely. D testified that he was scared and had to agree to pay. D also testified that because of the fright he suffered during his dispute with the association he became ill and vomited several times and had to remain away from work for a period of several days. After a number of meetings, D finally agreed, however, to pay Abramoff $1,850 for the Acme account and to join the association. D executed a series of promissory notes totaling $1,850. None of these notes was paid. P sued D to collect on them. D cross-complained and asked that the notes be canceled because of duress and want of consideration. D also sought general and exemplary damages because of assaults made P and its agents to compel him to join the association and pay Abramoff for the Acme account. The jury returned a verdict for D on the P complaint and D's cross-complaint. D got $1,250 general and special damages and $7,500 exemplary damages. The trial court denied a motion for a new trial on the condition that defendant consent to a reduction of the exemplary damages to $4,000. D consented, and P appealed.